Occupational Licensing in New Jersey
What is Occupational Licensing?
An occupational or professional license is a permit issued by the government that lets someone work in a particular field. In New Jersey, almost one out of every five workers must now get an occupational license before they can legally do their jobs. But many licenses don’t even improve service quality or protect the public from actual harm.
Licenses Create Barriers to Working in New Jersey
Occupational licenses often impose high barriers to entry. That makes it much harder for people to find work or to start a new business. According to the Institute for Justice’s report, License to Work, the average license for low- and moderate-income jobs in New Jersey takes 422 days of education and experience. In fact, New Jersey has the 14th burdensome licensing laws in the nation. And those required classes can be very expensive.
For instance, cosmetology is one of the state’s most popular licenses. In New Jersey, it takes at least 1,200 hours of classes to get a license in cosmetology. On average, a cosmetology program in the state costs $16,531, while the average student takes out $6,082 in federal student loans.
All told, the state’s licensing requirements come with heavy costs. A separate study by IJ, At What Cost?, estimated that occupational licensing costs the state’s economy $9.43 billion and leads to nearly 81,000 fewer jobs each year.
Recent Licensing Reforms in New Jersey
Working with the Institute for Justice, lawmakers in New Jersey created a new, less burdensome license for natural hair braiders and eased licensing barriers for ex-offenders. New Jersey also enacted universal recognition for out-of-state licenses. Under the law, licensed workers who move to the state will be free to work when they arrive and will no longer have to waste their time and money trying to obtain another permission slip from the government.
Can You Get a License to Work with a Criminal Record in New Jersey?
Licensing boards in New Jersey can disqualify applicants if they have been convicted of a crime that has a “direct or substantial relationship” to the license or if granting the license “would be inconsistent with the public’s health, safety, or welfare.” New Jersey also requires boards to consider multiple mitigating factors, like evidence of rehabilitation and the time elapsed since the crime occurred, while boards must also offer applicants a hearing before they can be denied. Overall, New Jersey received a C+ for its laws in IJ’s Barred from Working report.
How You Can Help
If you are a New Jersey resident and you want to help fight against these unfair and unnecessary licensing laws, there are a few ways you can get involved. You can donate to the Institute for Justice, sign up for our email updates, and share our message with your network. Together, we can make sure that all New Jersey workers have the economic liberty they deserve.
New Jersey Occupational Licensing in the News
Are Occupational Licenses Preventing You From Working in New Jersey ?
Are you not able to exercise your job or open a business because of burdensome occupational licensing requirements in your state?
Are you forced to waste valuable time and money to become licensed?
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Occupational Licensing Research
This third edition of IJ’s landmark License to Work report finds that for lower-income Americans, licensing continues to be widespread, burdensome and—frequently—irrational. It also provides a blueprint for meaningful licensing reform.
Cosmetology | Economic Liberty
Cosmetology is one of the most widely and onerously regulated occupations for lower-income workers, yet little research has explored the experiences of aspiring beauty workers. This first-of-its-kind study takes advantage of federal educational…
Economic Liberty | Occupational Licensing
Earning an honest living is one of the best ways to prevent re-offending. But strict occupational licensing requirements make it harder for ex-offenders to find work, thwarting their chances of successful reentry.
Economic Liberty | Occupational Licensing
Not only do state occupational licensing laws force people to spend a lot of time and money earning a license instead of earning a living, they also impose real economic costs. This study takes advantage…
Learn more about our Economic Liberty work.
Economic liberty—the right to earn a living in the occupation of your choice without unnecessary government interference—is at the heart of the American Dream. Unfortunately, all too many entrepreneurs find that this dream is under constant attack by unreasonable licensing, permitting and other requirements that stand in the way of honest competition.Learn More
Reforming Occupational Licensing Nationwide
All Americans deserve the opportunity to earn an honest living. Yet occupational licenses, which are essentially permission slips from the government, routinely stand in the way of honest enterprise. Since our founding, IJ has fought to roll back oppressive occupational-licensing rules in more than two dozen distinct occupations, ranging all the way from tax preparers to florists to traditional African hair braiders. Learn more about IJ’s occupational-licensing work in all 50 states:
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky |Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | Washington, D.C. | West Virginia | Wisconsin | Wyoming